Topu Full Assignment 01

Department of Accounting & Information Systems
Course Name: Credit & Risk Management
Assignment on
Credit Risk Grading Score Sheet
of
H.R. Textile Mills Limited
Submitted To Submitted By
Dr. Md. Ali Noor Md. Khurshid Alam Topu

Professor, Sec – A
Department of AIS. ID – B160201059
Jagannath University.
Submission Date – 30/08/2020

CREDIT RISK GRADING SCORE SHEET
Reference No: Date:
Borrower: H.R. Textile Mills Limited
Group Name (if any): Pride Group Aggregate Score: 75
Branch:
Industry/Sector: Garments
Risk Grading: ACCPT
Date of Financials: June 30, 2018
Completed by:
Approved by:
Number Grading Short Score

1 Superior SUP Fully cash secured, secured by
Government/International Bank
Guarantee
2 Good GD 85+
3 Acceptable ACCPT 75-84
4 Marginal/Watchlist MG/WL 65-74
5 Special Mention SM 55-64
6 Substandard SS 45-54
7 Doubtful DF 35-44
8 Bad & Loss BL <35
Criteria Weight Score

Actual Score
Parameter
A. Financial Risk 50% Parameter Obtained
1. Leverage: (15%)  Less than 0.25× 15
 0.26× to 0.35 x 14
Debt Equity Ratio (×) - Times  0.36× to 0.50 x 13
Total Liabilities to Tangible Net worth  0.51× to 0.75 x 12
 0.76× to 1.25 x 11 0.76 11
All calculations should be based on  1.26× to 2.00 x 10
annual financial statements of the  2.01× to 2.50 x 8
Borrower (audited preferred).  2.51× to 2.75 x 7
 More than 2.75× 0
2. Liquidity: (15%)  Greater than 2.74× 15
 2.50× to 2.74 x 14
Current Ratio (×) - Times  2.00× to 2.49 x 13
Current Assets to Current Liabilities  1.50× to 1.99 x 12
 1.10× to 1.49 x 11 0.85 8
 0.90× to 1.09 x 10
 0.80× to 0.89 x 8
 0.70× to 0.79 x 7
 Less than 0.70× 0
3. Profitability: (15%)  Greater than 25% 15
Operating Profit Margin (%)  20% to 24% 14
 15% to 19% 13
Operating Profit  10% to 14% 12 2.13% 7
×100  7% to 9% 10
Sales  4% to 6% 9
 1% to 3% 7
 Less than 1% 0
4. Coverage: (5%)  More than 2.00× 5
Interest Coverage Ratio (×)-Times  More than 1.51× Less than 2.00× 4
 More than 1.25× Less than 1.50× 3 0.88 0
Earning Before Interest & Tax (EBIT)  More than 1.00× Less than 1.24× 2
Interest on debt
 Less than 1.00× 0
Total Score–Financial Risk 50 26
Parameter Actual Score
B. Business/Industry Risk Parameter Obtained
18%
1. Size of Business (Sales in BDT crore)  > 60.00 5
 30.00 – 59.99 4
The size of the borrower’s business  10.00 – 29.99 3 202 5
measured by the most recent year’s  5.00 - 9.99 2
total sales. Preferably based on audited  2.50 - 4.99 1
financial statements  < 2.50 0
2. Age of Business  > 10 years 3
 > 5 - 10 years 2
The number of years the borrower has  2 - 5 years 1 36 year 3
been engaged in the primary line of  < 2 years 0
business.
3. Business Outlook  Favorable 3
 Stable 2
A critical assessment of the medium  Slightly Uncertain 1 Favorable 3
term prospects of the borrower, taking  Cause for Concern 0
into account the industry, market share
and economic factors.
4. Industry Growth  Strong (10%+) 3
 Good (>5% - 10%) 2
 Moderate (1% - 5%) 1 18.76% 3
 No Growth (<1%) 0
5. Market Competition  Dominant Player 2

 Moderately Competitive 1 Moderate 1
 Highly Competitive 0
6. Entry/Exit Barriers  Difficult 2

 Average 1 Difficult
 Easy 0 2
Total Score-Business/Industry Risk 18 17
Criteria Weight Score Actual Score

C. Management Risk 12% Parameter
Parameter Obtained
1. Experience  More than 10 years in the related 5
(Management & Management Team) line of business
 5–10 years in the related line of 3
The quality of management based on business 14 year 5
the aggregate number of years that  1–5 years in the related line of 2
the Senior Management Team has business
been in the industry.  No experience 0
2. Second Line/ Succession  Ready Succession 4
 Succession within 1-2 years 3
 Succession within 2-3 years 2 Ready 4
 Succession in question 0
3. Team Work  Very Good 3
 Moderate 2 Very Good 3
 Poor 1
 Regular Conflict 0
Total Score-Management Risk 12 12
Actual Score
D. Security Risk 10% Parameter
Parameter Obtained
1. Security Coverage (Primary)  Fully pledged facilities/substantially 4
cash covered/Reg. Mortg, for HBL
 Registered Hypothecation 3 Fully pledge 4
(1st charge/1st Pari passu charge)
 2nd Charge/Inferior charge 2
 Simple hypothecation/negative lien 1
on assets.
 No security 0
2. Collateral Coverage  Registered Mortgage on Municipal 4
(Property Location) Corporation/Prime area property.
 Registered Mortgage on 3
Pourashava/semi-urban area Municipal 4
property Corporation
 Equitable Mortgage or No property 2
but plant & machinery as collateral
 Negative lien on collateral 1
 No collateral 0
3. Support (Guarantee)  Personal guarantee with high net 2
worth or Strong Corporate
Guarantee
 Personal Guarantees or Corporate Strong 2
Guarantee with average financial 1
strength
 No Support/Guarantee
0
Total Score- Security Risk 10 10
Criteria Weight Actual Score

Parameter Score
E. Relationship Risk 10% Parameter Obtained
1. Account Conduct  More than 3 (three) years accounts 5
with faultless record
 Less than 3 (three) years accounts 4
with faultless record 5 years 5
 Accounts having satisfactory 2
dealings with some late payments
 Frequent Past dues & Irregular 0
dealings in account
2. Utilization of Limit  More than 60% 2
(actual/projection)  40% - 60% 1 66% 2
 Less than 40% 0
3. Compliance of  Full Compliance 2
Covenants / Conditions  Some Non-Compliance 1 Full 2
 No Compliance 0
4. Personal Deposits  Personal accounts of the key 1

business Sponsors/ Principals are
The extent to which the bank maintained in the bank, with - 1
maintains a personal banking significant deposits
relationship with the key business  No depository relationship 0
sponsors/principals.
Total Score-Relationship Risk 10 10
Grand Total- All Risk 100 75
Calculation:
1. Leverage Ratio:
Total Liabilities
Tangible Net Worth
𝟏,𝟐𝟑𝟓,𝟒𝟗𝟓,𝟐𝟗𝟐
=
𝟏,𝟔𝟐𝟒,𝟐𝟎𝟓,𝟐𝟕𝟒
=0.76
2. Liquidity Ratio:
𝑪𝒖𝒓𝒓𝒆𝒏𝒕 𝑨𝒔𝒔𝒆𝒕
𝑪𝒖𝒓𝒓𝒆𝒏𝒕 𝑳𝒊𝒂𝒃𝒊𝒍𝒊𝒕𝒊𝒆𝒔
𝟖𝟖𝟏,𝟑𝟗𝟕,𝟔𝟑𝟑
=
𝟏,𝟎𝟒𝟎,𝟒𝟕𝟏,𝟗𝟐𝟓
=0.85
3. Profitability Ratio:
𝑶𝒑𝒆𝒓𝒂𝒕𝒊𝒏𝒈 𝑰𝒏𝒄𝒐𝒎𝒆
× 𝟏𝟎𝟎
𝑺𝒂𝒍𝒆𝒔
𝟒𝟑,𝟎𝟗𝟒,𝟖𝟗𝟓
= × 𝟏𝟎𝟎
𝟐,𝟎𝟐𝟒,𝟑𝟗𝟕,𝟐𝟐𝟏
=2.13%
4. Coverage Ratio:
𝑬𝒂𝒓𝒏𝒊𝒏𝒈𝒔 𝑩𝒆𝒇𝒐𝒓𝒆 𝑰𝒏𝒄𝒐𝒎𝒆 𝑻𝒂𝒙
𝑰𝒏𝒕𝒆𝒓𝒆𝒔𝒕 𝒐𝒏 𝑫𝒆𝒃𝒕
𝟔𝟒,𝟖𝟖𝟔,𝟒𝟖𝟔
=
𝟕𝟒,𝟎𝟏𝟕,𝟔𝟖𝟒
=0.88
ATA KHAN & CO.
Chartered Accountants
Auditors’ Report
to
The Shareholders of H.R. Textile Mills Limited
We have audited the accompanying financial statements of H.R. Textile Mills Limited (’’the Company’’) which comprise the
Statement of Financial Position as at June 30, 2018, Statement of Profit or Loss and other Comprehensive Income,
Statement of Cash Flows, Statement of Changes in Equity and a summary of significant accounting policies and other
explanatory information disclosed in Notes 1-35 to the financial statements for the year then ended.
Management’s responsibility for the Financial Statements
Management of the Company is responsible for the preparation and fair presentation of these financial statements in
accordance with Bangladesh Financial Reporting Standards (BFRSs); the Companies Act, 1994 and Securities and Exchang-
es Rules, 1987 and for such internal control as the management determines it necessary to enable the preparation of
financial statements that are free from material misstatements, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in
accordance with Bangladesh Standards on Auditing (BSA). Those standards require that we comply with ethical require-
ments and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material
misstatements of the financial statements, whether due to fraud or error. In making those risk assessments, we consider
internal control relevant to the Company‘s preparation and fair presentation of the financial statements in order to design
audit procedures that are appropriate in the circumstance, but not for the purpose of expressing an opinion on the
effectiveness of the Company’s internal control. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is suflcient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial position of H.R. Textile Mills
Limited as at June 30, 2018 and its financial performance and its cash flows for the year then ended in accordance with
Bangladesh Financial Reporting Standards and comply with the applicable sections of the Companies Act, 1994, the
Bangladesh Securities and Exchange Rule, 1987 and other applicable laws and regulations.
We also report that

(a) We have obtained all the information and explanations which to the best of our knowledge and belief were neces-
sary for the purpose of our audit and made due verification thereof;
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appeared
from our examination of these books;
(c) The statement of financial position and statement of profit or loss and other comprehensive income dealt with by
the report are in agreement with the books of accounts and returns; and
(d) The expenditure incurred was for the purposes of the Company’s business.
Dated: Dhaka ATA KHAN & CO.

October 24, 2018 Chartered Accountants
Statement of Financial Position
As on 30th June 2018
CAPITAL EMPLOYED IN:
ASSETS:
Notes
NON-CURRENT ASSETS:
Property, Plant and Equipment 2
Total Non-Current Assets
CURRENT ASSETS
Stocks and Stores 3
Trade and Other Debtors 4
Export Incentive Receivables 5
Advances, Deposits and Prepayments 6
Cash and Bank Balances 7
Total Current Assets
Total Assets
SHAREHOLDERS' EQUITY & LIABILITIES:
Shareholders’ Equity
Share Capital 8
General Reserve 9
Tax Holiday Reserve 10
Dividend Equalisation Reserve 11
Unappropriated Profit
TOTAL SHAREHOLDERS' EQUITY
LONG-TERM LIABILITIES:
Long-term Loans - Secured Future Maturity 12
Provision for Gratuity 13
Deferred Tax Liabilities 14
Total Long-term Liabilities
CURRENT LIABILITIES :
Bank Overdrafts - Secured 15
Time Loan - Secured 16
Trade Creditors 17
Accrued Expenses 18
Provision for CurrentTaxation 19
Bills Receivable Discounted 20
Workers' Participation/Welfare Funds 21
Current Maturity of Long-term Loans 22
Total Current Liabilities
Total Liabilities
TOTAL SHAREHOLDERS' EQUITY & LIABILITIES
Net Assets Value (NAV) per value of Tk.10
The annexed notes from 1 to 35 form an integral part of these financial statements.
Dr. Muhammad Abdul Moyeen Mr. Mohammad Abdul Moyeed Mr. Mohammad Abdul Momen Mr. Md. Wali Ullah
Chairman Managing Director Director Company Secretary
Signed in terms of our separate report of even date.

Statement of Profit or Loss and
other Comprehensive Income
For the year ended 30th June 2018
Particulars Notes 2018 2017

Taka Taka
Sales Revenue 23 2,024,397,221 1,640,655,729

Export Incentive 24 22,088,900 17,589,653
Turnover 2,046,486,121 1,658,245,382
Less: Cost of Goods Sold 25 1,759,509,642 1,417,026,861
Gross Profit 286,976,479 241,218,521
Less: Administrative, Selling and General Expenses 26 220,427,548 184,707,006
Operating Profit 66,548,931 56,511,515
Add: Other Income 27 1,581,879 365,400
Profit before Workers' Participation/Welfare Funds 68,130,810 56,876,915
Less: Contribution to Workers' Participation/Welfare Funds 21 3,244,324 2,708,425
Net Profit before Tax 64,886,486 54,168,490
Provision for Income Tax 21,791,591 17,882,042
Provision for Income Tax (Current) 28 18,436,758 14,082,234
Provision for Income Tax (Deferred) 14 3,354,833 3,799,808
Net Profit after Tax 43,094,895 36,286,448
(Transferred to the statement of Changes in Equity)
Earning per share (EPS) of Tk. 10 1.70 1.43

Statement of Cash Flows
Particulars Notes 2017

Taka
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers and export incentives 1,821,302,562
Cash paid for goods and services (1,514,058,261)
Cash from operation 307,244,301
Interest paid (54,111,083)
Income-tax paid/deducted at sources (14,018,289)
Net Cash inflows from operating activities 239,114,929
CASH FLOWS FROM INVESTING ACTIVITIES:

Acquisition of fixed assets 2.2 (100,302,909)
Net Cash outflows from investing activities (100,302,909)
CASH FLOWS FROM FINANCING ACTIVITIES:

Bank Overdraft Received/(Repaid) 11,846,762
Long Term Loans Received/(Repaid) 10,553,879
Time Loan Received/(Repaid) 14,483,306
Bills Receivable Discounted Received/(Repaid) (111,392,624)
Cash Dividend paid (22,856,850)
Net Cash inflow from financing activities (97,365,527)
Net increase/(decrease) in cash and bank balances 41,446,493
Cash and bank balances on opening 40,634,434
Net increase/(decrease) in cash and bank balances 41,446,493
Cash and Cash equivalents at closing - Note 7 82,080,927
Net operating cash flows per share (NOCFPS) of Tk. 10 9.45

Dated: Dhaka
October 24, 2018
26
Annual Report 2017-18


Statement of Changes in Shareholders’ Equity
Particulars Share Capital General Tax holiday Dividend Equalisation Retained Total
Reserve Reserve Reserve Earnings Taka
Balance as at 30th June 2016 253,000,000 6,956,752 22,378,988 10,000,000 67,592,899 359,928,639
Net profit after tax - - - - 36,286,448 36,286,448
Cash Dividend declared 2016 - - - - (25,300,000) (25,300,000)
Net profit after tax - - - - 43,094,895 43,094,895
Cash Dividend declared 2017 - - - - (25,300,000) (25,300,000)
Dated: Dhaka
October 24, 2018

Notes to the Financial Statements
For the year ended June 30, 2018
Forming an Integral Part of the Financial Statements
1. Notes - General
(a) Status and Activities:
This is a public limited company incorporated in Bangladesh under the Companies Act, 1913 on 3 December 1984 under the
entrepreneurship of the Pride Group. The other shareholders are the general public and local financial institutions. The shares of
the Company are listed with both the Dhaka and Chittagong Stock Exchanges in Bangladesh. The address of the registered office
is B-87, Malibag Chowdhury Para, Dhaka and the mills are located at 4, Karnapara, Savar, Dhaka. The Company owns textile mills
and its principal activities are knitting, processing and finishing of textile products and making garments.
(b) Components of the Financial Statements:
(i) Statements of Financial Position as on 30th June 2018;
(ii) Statements of Profit or Loss and other Comprehensive Income for the year ended 30th June 2018;
(iii) Statemets of Cash Flows for the year ended 30th June 2018 and
(iv) Statements of Changes in Shareholders’ Equity for the year ended 30th June 2018;
(v) Notes to the Financial Statements for the year ended 30th June 2018.
(c) Reporting Period:
The financial period of the Company covers an accounting year from 1st July 2017 to 30th June 2018 next consistently.
(d) Reporting Currency:
The figures in the financial statements represent Bangladesh Taka currency, which have been rounded off to the nearest Taka,
except where indicated otherwise.
(e) Comparative Information:
Comparative information have been disclosed in respect of the year 2017 for all numerical information in the financial statements
and also narrative and descriptive information when it is relevant to an understanding of the current year's financial statements.
Figures of the previous year have been re-classified whenever considered necessary to ensure comparability with the current year.
(f) Statement of compliance with local laws:
The financial statements have been prepared in compliance with requirements of the Companies Act, 1994; Banaladesh Securities
and Exchange Rules, 1987 and other relevant laws as applicable. The cash flows from operating activities are computed by the
direct method as prescribed by the Bangladesh Securities and Exchange Rules, 1987.
(g) Statements of compliance with Bangladesh Accounting Standards (BASs) and Bangladesh Financial Reporting Standards
(BFRSs):
The financial statements complied with requirements of Bangladesh Accounting Standards (BASs) and Bangladesh Financial
Reporting Standards (BFRSs) as issued by the International Accounting Standards Board (IASB) and as adopted by the Institute of
Chartered Accountants of Bangladesh (ICAB).
(h) Statement of Measurement Basis:
The financial statements have been prepared using the Historical Cost basis, except for the earlier revaluation of certain
non-current assets.
(i) Accrual basis Accounting:
The financial statements have been prepared, except for cash flows information, under the accrual basis of accounting.
(j) Statement of Specific Accounting Policies Applied:
i) Revenue Recognition:
Sales are recognized at the time of delivery from godown.
ii) Fixed Assets and Depreciation:
Fixed Assets i.e. Property, Plant, Equipment are stated at their historical cost less accumulated depreciation. No Depreciation
has been charged on land and land development and on the Capital Work in progress. Depreciation is charged on all other
H.R. Textile Mills Limited 27

fixed assets on straight-line method. The rates at which assets are depreciated depend on the nature and estimated useful life
of each asset, and are given below:
Item Rate
Factory Building 2.50%
Plant and Machinery 7.00%
Factory Shed 7.50%
Electric, Gas, Water, Steam and Telephone Installation,
Furniture & Fixture, Office Equipment, Factory Equipment and
Tools & Apparatus 10.00%
Motor Vehicles 15.00%
Net carrying amounts (written down value) is arrived at after deduction of accumulated depreciation from gross carrying
amounts (cost). The gross carrying amounts (cost) represent cost of acquisition or construction and capitalization of
pre-production expenditure including interest during construction period and lease payments. Leased plant and machinery
has been capitalized at "Principal amount" thereof and proportionate interest thereof has been charged to interest expenses
in terms of BAS 17 - "Lease".
iii) Stocks and Stores:
Stocks and Stores are valued at lower of weighted average cost and net realizable value. Cost of Work in Process includes
material and proportionate conversion cost. Finished goods include material and conversion cost.
iv) Provision for Tax:
Provision for current income tax has been made during the year under review in respect of net profit at the rate of 15%.
Provision for deferred tax has been made at 15% on the timing difference relating to written down value in terms of BAS 12-
“Income Taxes” .
v) Foreign Currency Transaction:
Transactions in Foreign Currencies are translated into Bangladesh Taka at the rate of exchange ruling on the date of
transaction. Monetary assets and liabilities expressed in foreign currencies are translated into Bangladesh Taka at the
rate of exchange ruling at the date of Statement of Financial position. Exchange differences are dealt with in the
Statement of Profit or Loss and Other Comprehensive Income.
vi) Translation of closing balances in foreign currencies:
These are converted into Bangladesh Taka at the exchange rate ruling on the date of Statement of Financial Position as follows:
2018 2017
Receivables Payables Receivables Payables
US Dollar 82.64 82.92 Tk. 79.67 Tk. 79.83
vii) Trade Receivables:

Trade Receivable are stated at their nominal value and considered good. No provision has been made for doubtful debt and
no amount was written off as bad.
viii) Payables:
Trade payables are stated at their nominal value.
ix) Cash and cash equivalents:
Cash in hand and cash at bank have been considered as the cash and cash equivalents for the preparation of these financial
statements, which were held and available for use by the Company without any restriction and there was insignificant risk of
changes in value of these current assets.
x) Related Party Transaction:
The Company has some related party transactions at arm’s length basis with its related parties.
xi) Earnings Per Share (EPS):
The Company calculates Earnings Per Share (EPS) in accordance with Bangladesh Accounting Standard, BAS-33, "Earning Per
Share".
xii) Retrial Benefits (Gratuity) :
The retrial benefit (gratuity) liability for the permanent employees of the Company is accrued at one months’ basic pay for
each completed year of service of each employee who has completed service for six months or more.
28 H.R. Textile Mills Limited

2. Property, Plant and Equipment

2.1 The make-up of Fixed Assets of Unit-1 is as belows: Cost or valuation Depreciation Written down value
Particulars As on 1 July Additions/ As on 30 June As on 1 July During As on 30 June As on 30 June
2017 (Deletions) 2018 2017 the period 2018 2018
Factory Land and Development 7,250,000 - -
Factory Building 23,230,710 - 580,768
Factory Shed 6,823,475 - -
Plant and Machinery 89,257,661 - -
Electric Installation 3,601,103 - -
Gas Installation 2,171,914 - -
Water Installation 1,168,842 - -
Steam Installation 1,991,090 - -
Furniture and Fixtures 718,694 - -
Telephone Installation 449,033 - -
Motor Vehicles 5,783,524 - -
Office Equipment 3,723,054 - -
Loose Tools 142,382 - -
Factory Equipment 153,885 - -
Total Taka 146,465,367 - 580,768
2.2 The make-up of Fixed Assets of Unit-2 is as belows: Cost or valuation Depreciation Writtendownvalue
Particulars Ason 1 July Additions As on 30 June As on 1 July During the As on 30 June As on 30 June
2017 (Deletion)) 2018 2017 Period 2018 2018
Land Development 1,229,375 - 1,229,375 - - - 1,229,375
Factory Building 181,447,748 30,227,295 211,675,043 47,333,826 4,679,049 52,012,875 159,662,168
Plant and Machinery 1,082,783,922 54,793,240 1,137,577,162 614,473,209 55,050,084 669,523,293 468,053,869
Gas Installation 4,304,121 - 4,304,121 4,304,116 - 4,304,116 5
Electric Installation 14,966,615 1,100,000 16,066,615 12,394,244 1,572,305 13,966,549 2,100,066
Water Installation 5,655,573 1,641,105 7,296,678 4,091,268 646,630 4,737,898 2,558,780
Steam Installation 572,262 - 572,262 572,257 - 572,257 5
Telephone Installation 578,828 - 578,828 578,823 - 578,823 5
Motor Vehicles 34,110,228 6,298,370 40,408,598 18,488,246 3,504,024 21,992,270 18,416,328
Furniture and Fixtures 7,623,998 1,612,435 9,236,433 7,407,004 848,855 8,255,859 980,574
Office Equipment 32,634,673 398,820 33,033,493 21,650,524 3,290,440 24,940,964 8,092,529
Factory Equipment 9,879,657 2,292,960 12,172,617 6,308,932 1,097,382 7,406,314 4,766,303
Loose Tools 41,493 - 41,493 41,488 - 41,488 5
Capital Works in Progress - 60,757,437 60,757,437 - - - 60,757,437
Total Taka 1,375,828,493 159,121,662 1,534,950,155 737,643,937 70,688,769 808,332,706 726,617,449
Grand Total June, 2018 1,522,293,860 159,121,662 1,681,415,522 867,338,344 71,269,537 938,607,881 742,807,641

Grand Total June, 2017 1,421,990,951 100,302,909 1,522,293,860 799,555,618 67,782,726
867,338,344 654,955,516
2.3. Depreciation for the year is charged as below:

Particulars 2018 2017
Taka Taka
Cost of Goods Sold - Note 25.1 57,015,630 54,226,180
Administrative, Selling and General Expenses - Note 26.1 14,253,907 13,556,546
71,269,537 67,782,726
3. Stocks and Stores

3.1 The make-up is as follows: 2018 2017
Quantity Amount Quantity Amount
Item (In Kg.) Taka (In Kg.) Taka
Stock of Yarn - Note 3.2 603,895 170,810,558 607,086 152,051,570
Stock of Dyes and Chemicals - Note 3.3 281,124 52,941,206 160,105 38,419,208
Stock of Work-in-Process - Note 3.4 43,464,295 57,568,320
Stock of Finished Goods - Note 3.5 48,948,923 52,089,632
Stock of Accessories 5,683,320 3,494,275
Goods in Transit 5,699,504 8,756,232
327,547,806 312,379,237
Stock of Spares 5,708,615 5,632,127
333,256,421 318,011,364
3.2 Stock of Yarn
Stock of Yarn 603,895 170,810,558 607,086 152,051,570
603,895 170,810,558 607,086 152,051,570
3.3 Stock of Dyes and Chemicals
Dyes 38,550 27,458,636 22,285 19,857,080
Chemicals 242,574 25,482,570 137,820 18,562,128
281,124 52,941,206 160,105 38,419,208
3.4 Stock in Work in Process
Cost of Materials 18,502,289 17,490,070
Cost of Conversion 24,962,006 40,078,250
43,464,295 57,568,320
3.5 Stock of Finished Products

- 26,728,412 - 11,540,584
Finished Garments
110,348 22,220,511 125,545 40,549,048
Knitted Fabrics
110,348 48,948,923 125,545 52,089,632
4. Trade and Others Debtors

US$ Taka US$ Taka
3,941,468 325,722,914 3,292,652 262,325,556
Export Sales Receivable (Below 180 days)
- 45,500,000 - 46,420,600
Others Debtors
3,941,468 371,222,914 3,292,652 308,746,156
These include a sum of Tk. 45,500,000 (2017: Tk. 46,420,600 ) due from Associates Companies, expected to be
realised/ adjusted within a year from the financial statement end date.
These are unsecured but considered goods.

5. Export Incentives Receivables

2018 2017
Taka Taka
Opening Balance 95,177,576 125,066,201
Less: Received 41,859,700 47,478,278
53,317,876 77,587,923
For the year 22,088,900 17,589,653
Closing Balance 75,406,776 95,177,576
The receivables are unsecured but considered goods.
6. Advances, Deposits and Prepayments

Advances:
Salary Advance 1,324,504 958,512
Advance Tax 210,000 -
Factory Insurance Advance 905,912 1,345,431
Operational Advance 5,933,929 5,973,962
Tax deducted at source 30,144945 26,361,405
38,519,290 34,639,310
Deposits :
Security deposit 10,151,571 8,984,221
Bank Guarantee margin 4,558,670 3,392,820
L/C Margin - 2,271,924
14,710,241 14,648,965
53,229,531 49,288,275
The advances are unsecured but considered goods.
7. Cash and Bank Balances

Cash at Banks with Banks on Current Account:
BRAC Bank Ltd, Dhanmondi Branch, CD A/c 16,506 286,653
Mutual Trust Bank Ltd, Gulshan Branch, CD A/c 2,122 125,197
Mutual Trust Bank Ltd, Gulshan Branch, Dollar A/c 31,357,734 22,874,983
Mutual Trust Bank Ltd, Gulshan Branch, ERQ A/c 401,854 91,597
Mutual Trust Bank Ltd, Gulshan Branch, SND A/c 389,238 -
HSBC, Anchor Tower Branch, MDA Margin A/c 5,797,972 13,837,729
HSBC, Anchor Tower Branch, FCY A/c 795,271 -
Trust Bank Ltd, SKB Branch, Dollar A/c 1,127,877 39,093,343
Trust Bank Ltd, SKB Branch, FCAD A/c 850,588 1,366,509
Trust Bank Ltd, SKB Branch, CD A/c 6,267 9,630
Dutch-Bangla Bank Ltd., Gulshan Branch, CD A/c 1,103,754 704,838
AB Bank Ltd, Motijheel Branch, CD A/c - 74,868
AB Bank Ltd, Motijheel Branch, CD A/c 25,039 873
AB Bank Ltd, Motijheel Branch, Notice A/c - 2,342
AB Bank Ltd, Motijheel Branch, Notice A/c 3,814,731 324,132
45,688,953 78,792,394
With Bank on Short Term Deposit Account:
Trust Bank Ltd, SKB Branch, SND A/c 23,030 879,995
Southeast Bank Ltd, Principal Branch, STD A/c 1,002,585 982,908
1,025,615 1,862,903
Cash at Banks 46,714,568 80,655,297
Cash in Hand 1,567,423 1,425,630
48,281,991 82,080,927

8. Share Capital
2018 2017
8.1 Authorized: Taka Taka
100,000,000 Ordinary Shares of Tk. 10 each 1,000,000,000 1,000,000,000
8.2 Issued, Subscribed and Paid-up:

25,300,000 Ordinary Shares of Tk. 10 each fully paid-up 253,000,000 253,000,000
14,000,000 Ordinary Shares of Tk. 10 each fully paid-up in cash 140,000,000 140,000,000
11,300,000 Ordinary Shares of Tk. 10 each issued as fully paid-up bonus shares 113,000,000 113,000,000
25,300,000 253,000,000 253,000,000
8.3 Composition of shareholdings:
2018 2017
Classes of Holdings No. of Shares % No. of Shares %
Sponsor/Directors 12,911,855 51.04 12,911,855 51.04
Financials Institutions 2,955,545 11.68 2,219,127 8.77
ICB Capital Management Ltd 170,977 0.68 - -
ICB Securities Ltd 12,253 0.05 - -
ICB - - 72,697 0.29
ICB Investors A/c - - 29,459 0.12
ICB Mutual Fund - - 3,000 0.01
ICB Unit Fund - - 1,166,370 4.61
General Public 9,249,370 36.55 8,897,492 35.16
Total 25,300,000 100.00 25,300,000 100.00
Distribution schedule - Disclosures Under the Listing Regulations of Stock Exchanges:

The distribution schedule showing the number of shareholders and their share holdings in percentage has been
disclosed below as a requirement of the Stock Exchanges (Listing) Regulations, 2015.
Shareholdings range in number of shares
00000000001 - 00000000499 7,211 1,990,236 7.87 5,022 1,274,967 5.04

00000000500 - 00000000500 3,729 1,864,500 7.37 5,454 2,727,000 10.78
00000000501 - 00000002000 1,068 2,362,143 9.34 728 764,850 3.02
00000002001 - 00000005000 530 1,696,000 6.70 765 1,683,256 6.65
00000005001 - 00000010000 125 881,500 3.48 187 949,568 3.75
00000010001 - 00000050000 57 1,881,000 7.43 61 629,436 2.49
00000050001 - 00000100000 11 968,000 3.83 16 849,108 3.36
00000100001 - 00000250000 4 848,000 3.35 11 1,198,753 4.74
00000250001 - 00000500000 0 0 0 4 1,248,071 4.93
00000500001 and above 6 12,808,621 50.63 7 13,974,991 55.24
Total 12,741 25,300,000 100.00 12,255 25,300,000 100.00

8.4 Option on unissued shares:

There is no option regarding authorized capital not yet issued but can be used to increase the issued, subscribed
and paid up capital through the issuance of new shares.
9. General Reserve 2018 2017

Taka Taka
Opening & Closing Balance 6,956,752 6,956,752
6,956,752 6,956,752
10. Tax Holiday Reserve

Opening & Closing balance 22,378,988 22,378,988
22,378,988 22,378,988
11. Dividend Equalisation Reserve
Opening & Closing balance 10,000,000 10,000,000
10,000,000 10,000,000
12. Long Term Loan - Secured Future Maturity
10% Loan - Note 12.1 2,516,705 -
5% Loan - Note 12.2 102,892,400 168,657,945
Deferred L/C Liabilities - Note 12.3 22,632,920 -
Deferred L/C Liabilities - Note 12.4 - 13,087,330
128,042,025 181,745,275
12.1 The movement of loans is as follows:

Opening Balance - -
Add: Loan received this year 2,516,705 -
Closing Balance 2,516,705 -
The loan has been taken from Mutual Trust Bank Ltd., Gulshan Branch for import of Plant and machinery. The loan carries
interest at 10% and is repayable in 16 quarterly installments, starting from 11 June 2018. The loan is secured by
hypothecation of stock, machinery, equipment and book debts.
12.2 The movement of loans is as follows:

Opening balance 168,657,945 113,572,966
Add: Loan received this year 13,382,140 139,106,507
182,040,085 252,679,473
Less: Current Maturity (79,147,685) (81,506,992)
Less: Loan re-paid this year - (2,514,536)
Closing balance 102,892,400 168,657,945
The offshore term loan has been taken from The Honkong and Shanghai Banking Corporation Plc, Anchor Tower Branch,
108 Bir Uttam C.R. Dutta Road, Dhaka-1205, Bangladesh, for import of Plant and machinery. The loan carries interest at 5%
and is repayable in 16 quarterly installments, starting from 1 January 2014.
12.3 The movement of Deferred L/C liabilities is as follows:

Opening Balance - -
Add: This year 22,632,920 -
The offshore facility has been taken from Mutual Trust Bank Ltd., Gulshan Branch, 120 Gulshan Avenue, Gulshan,
Dhaka-1212, Bangladesh for import of Plant and machinery at 360 days deferred L/C payment.

12.4 The movement of Deferred L/C liabilities is as follows:

2018 2017
Taka Taka
Opening Balance 13,087,330 85,182,173
Less: Paid during the year 13,087,330 72,094,843
- 13,087,330
Add: Addition this year - -
Closing Balance - 13,087,330
The offshore facility has been taken from The Honkong and Shanghai Banking Corporation Plc, Anchor Tower Branch, 108
Bir Uttam C.R. Dutta Road, Dhaka-1205, Bangladesh, for import of Plant and machinery at 360 days deferred L/C payment.
13. Provision for Gratuity

2018 2017
Taka Taka
Opening balance 29,166,174 31,304,282
Add: Contribution this year 3,470,387 2,157,254
32,636,561 33,461,536
Less: Paid this year 4,783,597 4,295,362
Closing balance 27,852,964 29,166,174
14. Deferred Tax Liabilities

Opening Balance 35,773,545 31,973,737
Add: Provision during the year 3,354,833 3,799,808
Closing balance 39,128,378 35,773,545
Deferred Tax Liabilities for 2018 As per As per Temporary

Accounting Tax base Difference
base W.D.V W.D.V Taxable/
(Deductable)
Property, Plant and Equipments 742,807,641 454,098,819 288,708,822
Tax rate - - 15%
Deferred Tax Liabilities - - 43,306,323
Gratuity provision - 27,852,964 -
Deferred Tax assets 15% - - 4,177,945
Net deferred Tax Liabilities 39,128,378
15. Bank Overdraft

2017
Taka
Trust Bank Ltd, SKB Branch 51,180,303
HSBC Bank, Plc, Anchor Tower Branch, Kawran Bazar 38,477,934
Mutual Trust Bank Ltd., Gulshan Branch -
89,658,237
These are secured
16. Time Loan Bank

11.50% Loan - Note 16.1 14,483,306
11.50% Loan - Note 16.2 -
14,483,306
These are secured

16.1 The movement of loan is as follows: 2018 2017

Taka Taka
Opening Balance 14,483,306 24,929,537
Less: Loan re-paid this year (14,483,306) (10,446,231)
Closing Balance 7,437,916 14,483,306
The loan has been taken from Trust Bank Ltd., Motijheel Branch for Working Capital requirement. The loan carries interest at
11.50% and is repayable in 12 months. The loan is secured by hypothecation of stock, machinery, equipment and book debts.
16.2 The movement of loan is as follows: 2018 2017

Taka Taka
Opening Balance - -
Less: Loan re-paid this year - -
The loan has been taken from Mutual Trust Bank Ltd., Gulshan Branch for retrofitting, factory building expansion &
Construction purpose. The loan carries interest at 11.50% and is repayable in 12 months. The loan is secured by hypothecation
of stock, machinery, equipment and book debts.
17. Creditors 2018 2017

US$ Taka US$ Taka
For Import Purchases 7,054,770 584,981,488 6,050,037 482,974,454
For Local Purchases 10,242,705 7,045,533
For Dividend Payable 47,552,099 98,098,972
For Staff Income Tax 233,149 336,481
For Refund Warrant 371,469 371,469
643,380,910 588,826,909
These are unsecured but creditors for import purchases are against back to back L/Cs.
18. Accrued Expenses 2018 2017

Taka Taka
Gas Expenses (Factory) 12,197,954 18,725,237
Electricity bill 364,049 214,310
Telephone 81,459 57,682
Salaries, Wages and Allowances 9,065,845 7,047,020
Security bill 192,000 348,000
Legal Fee 60,000 60,000
Auditors' Fee (Including Vat) 172,500 172,500
AGM Expense 400,000 700,000
22,533,807 27,324,749
19. Provision for Taxation
Opening balance 27,755,655 13,673,421
Add: Addition during the year 18,436,758 14,082,234
46,192,413 27,755,655
Less: Paid during the year (13,673,421) -
Closing Balance 32,518,992 27,755,655
20 Bills Receivable Discounted

Opening balance 33,424,991 144,817,615
Add: Discounted during the year 222,798,531 232,827,641
256,223,522 377,645,256
Less: Collected during the year 218,555,581 344,220,265
Closing balance 37,667,941 33,424,991

21. Workers' Participation/Welfare Funds 2018 2017

Taka Taka
Opening balance 27,678,894 35,996,566
Less: Payment this year 11,245,632 12,768,223
16,433,262 23,228,343
Add: Contributions for this year 3,244,324 2,708,425
Add: Interest during this year 1,232,495 1,742,126
Closing balance 20,910,081 27,678,894
Interest has been provided on the fund balance in terms of the Bangladesh Labour Law.
22. Current Maturity of Long-term Loans 2018 2017

Taka Taka
Opening balance 81,506,992 53,649,889
Add: Current Matuirity 79,147,685 81,506,992
160,654,677 135,156,881
Less: Paid this year 81,506,992 53,649,889
Closing Balance 79,147,685 81,506,992
The offshore facilities has been taken from The Honkong and Shanghai Banking Corporation Plc, Anchor Tower, 108 Bir
Uttam C.R. Dutta Road, Dhaka-1205, Bangladesh, for import of Plant and machinery at 360 days deferred L/C payment.
23. Sales 2018 2017

Quantity Amount Amount Quantity Amount Amount
Item
(in US$) Taka (In US$) Taka
Export sales:
Knit Fabrics (Kgs) 1,875,970 11,535,384 951,290,987 1,663,903 10,166,450 809,961,061
Garments (Pcs) 6,579,896 13,020,091 1,073,106,234 4,782,887 10,426,693 830,694,668
Total 24,555,475 2,024,397,221 20,593,143 1,640,655,729
24. Export Incentives 2018 2017

Taka Taka
Cash Incentive 22,088,900 17,589,653
22,088,900 17,589,653
Export Sales in Taka

25. Cost of Goods Sold

25.1 The break-up is as follows: 2018 2017
Taka Taka
Materials Consumed - Note-25.2 1,384,950,594 1,112,025,337
Salary, Wages and Allowances - Note 25.3 175,263,039 134,996,325
Tiffin & Entertainment expenses 658,456 465,953
Depreciation - Note 2.3 57,015,630 54,226,180
Stores and Spares Consumed 1,554,236 1,659,635
Factory Conveyance 712,564 565,965
Power and Gas 105,650,647 95,570,014
Gratuity 2,533,247 1,617,264
Vehicle expenses 1,344,856 1,185,963
Repairs and Maintenance 1,285,452 1,459,635
Packing & Loading expenses 986,694 985,692
Import Landing, Clearing and Insurance 1,045,842 1,159,642
Factory Stationery expenses 758,423 865,326
Carriage Inward & Outward 1,254,231 1,252,642
Knitting, Sewing & Processing charge 1,542,364 1,298,456
Factory Insurance 4,898,389 4,229,793
Sewing Machine Rental 581,563 575,887
Miscellaneous 228,681 145,980
Total Manufacturing Costs for the year 1,742,264,908 1,414,285,689
Add: Opening Work in Process 57,568,320 59,829,824
Total Manufacturing Costs 1,799,833,228 1,474,115,513
Less: Closing Work in Process 43,464,295 57,568,320
Cost of Goods Manufactured 1,756,368,933 1,416,547,193
Add: Opening Finished Goods 52,089,632 52,569,300
Cost of Goods available for use 1,808,458,565 1,469,116,493
Less: Closing Finished Goods 48,948,923 52,089,632
Cost of Goods Sold 1,759,509,642 1,417,026,861
25.2 Materials Consumed 2018 2017

Quantity (Kg) Taka Quantity (Kg) Taka
Yarn 3,462,055 979,242,364 2,899,038 791,553,246
Dyes 237,214 154,663,245 221,373 122,483,245
Chemicals 1,278,121 152,096,453 1,474,679 121,292,314
Accessories - 98,948,532 - 76,696,532
Total Materials Consumption - 1,384,950,594 - 1,112,025,337
25.3 Salaries, Wages and Allowances 2018 2017

No. of Employee Taka No. of Employee Taka
Employees drawing Tk. 3,000 or more p/m 1,878 175,263,039 1,847 134,996,325
Employees drawing less than Tk. 3,000 p/m - - - -
Total 1,878 175,263,039 1,847 134,996,325

26. Administrative, Selling and General Expenses

26.1 The break-up is as follows: 2018 2017
Taka Taka
Directors' Remuneration - Note 26.2 2,600,300 2,600,000
Salaries and Allowances - Note 26.3 55,325,412 53,169,532
Security Service charge 1,152,000 2,088,000
Depreciation - Note 2.3 14,253,907 13,556,546
Electricity expenses 3,574,772 2,682,725
Postage, Courier,Telephone and Fax 1,556,942 1,196,523
Form & Stamp 1,010,278 -
Gratuity 937,140 539,990
Traveling and Conveyance 845,634 995,762
Legal and Professional expenses 60,000 60,000
Auditors' Fee - Note 26.2 172,500 172,500
A.G.M expenses 387,561 874,890
Registration and Fees 825,464 975,320
Staff welfare 1,225,423 1,265,320
Stationery expenses 1,054,120 1,285,692
Office Repairs and Maintenance 1,050,213 1,354,200
Vehicle expenses 2,756,321 3,863,240
Entertainment expenses 954,633 1,062,300
Central fund for RMG 503,956 380,733
Buying House Commission 4,025,611 1,470,543
Freight Charges & Freight out 14,297,509 5,956,759
Garments Testing & Inspection Charges 10,392,143 7,836,802
Interest expense - Note 26.4 75,250,179 54,111,083
- 458,437
Currency Gain/(Loss)
25,557,290 25,981,589
Bank Charges
658,740 768,520
Miscellaneous
Total 220,427,548 184,707,006
26.2 No remuneration or fee, other than that specified in note 26.1, was paid to directors and auditors.
26.3 Salaries and Allowances: 2018 2017

No. of Employee Taka No.of Employee Taka
Employees drawing Tk.3,000 or more p/m 146 55,325,412 132 53,169,532

Employees drawing less than Tk.3,000 p/m - - - -
146 55,325,412 132 53,169,532
26.4 Interest expense is as follows: 2018 2017

Taka Taka
Interest on Workers’ Participation/Welfare Funds 1,232,495 1,742,126
Interest on Long Term Loans 11,657,041 11,526,611
Interest on Bills Discounted 50,869,270 32,284,534
Interest on Bank Overdraft 7,877,478 7,618,236
Interest on Time Loan 3,613,895 939,576
75,250,179 54,111,083
27.Others Income
365,400 365,400
Rental income -
1,216,479
Exchange Gain/(Loss)
1,581,879 365,400

28. Income Tax (Current Tax) 2018 2017

Taka Taka
Profit before tax 64,886,486 54,168,490
Add: Depreciation as per accounting base 71,269,537 67,782,726
136,156,023 121,951,216
Less: Depreciation as per Tax base 92,321,966 90,976,585
43,834,057 30,974,631
Add: Provision for Gratuity for the year 3,470,387 2,157,254
47,304,444 33,131,885
Less: Other income (Separate calculation) 365,400 365,400
46,939,044 32,766,485
Less: Payment for Gratuity 4,783,597 4,295,362
42,155,447 28,471,123
Tax Rate @ 15% 6,323,317 4,270,668
Minimum Tax 16,126,655 14,018,289
Add: Other income tax - -
Rental income 365,400 365,400
Less: Maintains @ 30% 109,620 109,620
255,780 255,780
Add: Tax Rate @ 25% 63,945 63,945
Current Tax 16,190,600 14,082,234
Add: Additional Tax for the prior years finally determined 2,246,158 -
18,436,758 14,082,234
29.Remuneration/Payments to Directors/Officers:
29.1 The aggregate amount paid/provided during the period in respect of directors and officers of the company as defined in
the Bangladesh Securities and Exchange Rules, 1987 are disclosed below:
2018 2017
Particulars Directors Officers Directors Officers
Remuneration 2,600,000 - 2,600,000 -
Basic salary - 33,095,240 - 32,156,320
House rent allowance - 15,894,452 - 15,848,560
Other benefits and perquisites - 6,335,720 - 5,164,652
2,600,000 55,325,412 2,600,000 53,169,532
29.2 No compensation was allowed by the company to its Managing Director.
29.3 No amount of money was spent by the company for compensating any member of the board for services rendered
except as stated above.
30. The Company has obtained bank credit facilities from the following banks
Bank & Branch Name Type of facility Limit Utilised Unutilised
2018 2017
Taka Taka Taka Taka
Trust Bank Ltd. Back to Back L/C, EDF& Sight 650,000,000 281,657,180 368,342,820 247,630,468
SKB Branch, Dhaka IBP 70,000,000 12,564,230 57,435,770 5,597,559
Trust receipt 40,500,000 - 40,500,000 40,500,000
Overdraft 50,000,000 51,350,460 (1,350,460) (1,180,303)
Bank guarantee 1,000,000 - 1,000,000 1,000,000
Term Loan 25,000,000 7,437,916 17,562,084 5,516,694
836,500,000 353,009,786 483,490,214 299,064,418
Mutual Trust Bank Ltd. Back to Back L/C, EDF& Sight 490,000,000 139,515,530 350,484,470 214,064,377
Gulshan Branch, Dhaka Secured Overdraft 10,000,000 10,039,939 (39,939) -
Term Loan 980,000,000 116,296,071 863,703,929 -
IDBP/FDBP 100,000,000 15,894,463 84,105,537 7,362,635
1,580,000,000 281,746,003 1,298,253,997 221,427,012
HSBC Export Cash Limit 246,000,000 85,645,632 160,354,368 21,641,122
Anchor Tower, 108 Bir Uttam Import Line (PRM) 395,000,000 147,989,813 247,010,187 132,042,148
C.R. Datta Road, Dhaka-1205 Import Line 600,000,000 401,933,619 198,066,381 311,035,466
Overdraft 50,000,000 19,188,123 30,811,877 11,522,066
Bank guarantee 30,000,000 4,558,670 25,441,330 4,533,800
Term Loan 184,677,770 34,050,272 150,627,498 20,000,000
1,505,677,770 693,366,129 812,311,641 500,774,602
31. The analysis of consumption of materials and spares as to origin is as below

2018 2017
Taka % Taka %
Imported 466,748,532 33.,66 368,808,649 33.12
Local 919,756,298 66.34 744,876,323 66.88
1,386,504,830 100.00 1,113,684,972 100.00
32. The capacity and actual production of the company are as follows
Actual Percentage (%)
Item
Capacity Production of achievement
Finished Garments (Lac Pcs.) 84 65.80 (2017: 47.83) 78.33% (2017: 56.94%)
Knit Fabrics ( MTs.) 4,500 3,653 (2017: 2,461) 81.18% (2017: 54.68%)
33. Even after Balance Sheet Date:
The Board of Directors of the Company in its meeting held on 24th October 2018 (2017: 23rd October 2017)
recommended 10% cash dividend i.e., Tk. 1.00 per share of Tk. 10.00 each (2017: 10% cash dividend) for all
shareholders of the company subject to their approval in the AGM.
34.Related Parties Disclosures

The Company in normal course of business carried out a number of transactions with other entities that fall within the
definition of “related party” contained in Bangladesh Accounting Standard-24; “ Related party Disclosure”. Total Balance
Sheet exposure with the related parties as at 30 June 2018 is as under.
Name of the related party Relationship Nature of Transaction 2018 2017
Fashion Knit Garments Ltd. Common Director Sale of Finished Fabrics 951,290,987 809,961,061
Receivable 45,500,000 46,420,600
35. General
35.1 There was no sum for which the company was contingently liable as at 30 June 2018 and 30 June 2017.
35.2 There was no claim, except an aggregate amount of Tk. 23,042,449 (2017: 21,095,550) claimed by the Tax Authority but
appealed against by the company, not acknowledged as debt as at 30 June 2018 and 30 June 2017. Such claim, being
contingent liability, needs not be provided for.
35.3 There was no credit facilities available to the company, except trade credits and back to back L/C facilities, during the years
ended 30 June 2018 and 30 June 2017.
35.4 There was no foreign shareholder of the company as at 30 June 2018 and 30 June 2017 and no dividend was
remitted to any foreign shareholders during the years ended 30 June 2018 and 30 June 2017.
35.5 There was no capital expenditure contracted but not incurred or provided for at 30 June 2018 and 30 June 2017.
35.6 There was no capital expenditure authorised by the Board but not contracted for at 30 June 2018 and 30 June 2017.
Dated: Dhaka October

24, 2018

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Department of Accounting & Information Systems

Course Name: Credit & Risk Management

Dr. Md. Ali Noor Md. Khurshid Alam Topu

Submission Date – 30/08/2020

Number Grading Short Score

Criteria Weight Score

5. Market Competition  Dominant Player 2

6. Entry/Exit Barriers  Difficult 2

Total Score-Business/Industry Risk 18 17

Criteria Weight Score Actual Score

Criteria Weight Actual Score

4. Personal Deposits  Personal accounts of the key 1

We also report that

Dated: Dhaka ATA KHAN & CO.

Signed in terms of our separate report of even date.

Particulars Notes 2018 2017

Sales Revenue 23 2,024,397,221 1,640,655,729

Signed in terms of our separate report of even date.

Particulars Notes 2017

CASH FLOWS FROM OPERATING ACTIVITIES:

CASH FLOWS FROM INVESTING ACTIVITIES:

CASH FLOWS FROM FINANCING ACTIVITIES:

Signed in terms of our separate report of even date.

Annual Report 2017-18

H.R. Textile Mills Limited

H.R. Textile Mills Limited

H.R. Textile Mills Limited 27

vii) Trade Receivables:

28 H.R. Textile Mills Limited

2. Property, Plant and Equipment

Annual Report 2017-18

2.3. Depreciation for the year is charged as below:

3. Stocks and Stores

3.5 Stock of Finished Products

4. Trade and Others Debtors

These are unsecured but considered goods.

30 H.R. Textile Mills Limited

5. Export Incentives Receivables

6. Advances, Deposits and Prepayments

7. Cash and Bank Balances

H.R. Textile Mills Limited 31

8.2 Issued, Subscribed and Paid-up:

8.3 Composition of shareholdings:

Distribution schedule - Disclosures Under the Listing Regulations of Stock Exchanges:

Shareholdings range in number of shares

00000000001 - 00000000499 7,211 1,990,236 7.87 5,022 1,274,967 5.04

32 H.R. Textile Mills Limited

8.4 Option on unissued shares:

9. General Reserve 2018 2017

10. Tax Holiday Reserve

12.1 The movement of loans is as follows:

12.2 The movement of loans is as follows:

12.3 The movement of Deferred L/C liabilities is as follows:

H.R. Textile Mills Limited 33

12.4 The movement of Deferred L/C liabilities is as follows:

13. Provision for Gratuity

14. Deferred Tax Liabilities

Deferred Tax Liabilities for 2018 As per As per Temporary